US Ownership of TikTok Secured: Oracle Leads American Investors in New Deal
A recent executive order signed by Donald Trump has paved the way for TikTok to be transferred to a US owner, separating the popular social media platform from its Chinese parent company ByteDance. The deal, which complies with US law, will see American investors taking control of the majority of TikTok's operations and its recommendation algorithm. Oracle, a US software giant, will lead the group of American investors overseeing TikTok's US operations, with other investors including Silver Lake, Rupert Murdoch, Lachlan Murdoch, and Michael Dell. The new version of TikTok will be governed by a board of directors, with a majority of cybersecurity and national security experts, most of whom are American.
The agreement marks the end of a legal uncertainty period for TikTok in the US and grants several US companies significant influence in the social media industry. Trump, who credited TikTok with aiding his 2024 presidential election win, sees the deal as a way to exert influence over the tech industry. The US government is expected to receive a substantial fee from the consortium of investors involved in the TikTok negotiations with China. The deal also addresses concerns about data privacy and potential Chinese propaganda dissemination through TikTok, which led to bipartisan pushback from lawmakers and a previous ban upheld by the supreme court.
The negotiations between the US and China on TikTok have been ongoing, with a framework for a deal announced by the US treasury secretary and confirmed by China's top trade negotiator. Trump's discussions with China's president Xi Jinping have led to the agreement, allowing TikTok to continue operating in the US under American ownership. The deal signifies a significant shift in the ownership and governance of TikTok, ensuring that US user data is protected and that American companies have a stake in the popular social media platform.